OAR 123-674-0400: Temporary rule language in effect until 12/01/2026. Flexible Hiring Timelines

(1) As provided by ORS 285C.200(2)(a), a sponsor and business firm may agree to use a flexible hiring timeline to meet the employment qualifications of ORS 285C.200(c)(A)-(B) rather than the timeline provided in ORS 285C.200(1)(c) (which is on or before the earlier of April 1 or the date on which the initial exemption claim is filed under ORS 285C.220, following the year in which the qualified property is first placed in service in the enterprise zone). Such authority is subject to the following requirements: (a) The new hiring timeline to meet the employment qualifications of 285C.200(1)(c)(A)-(B) must be detailed in a written agreement between the business firm and the sponsor (e.g. phased/ delayed, etc. with dates). (b) The written agreement to revise the hiring timeline for the employment qualifications must be executed on or before the date on which the firm is authorized under ORS 285C.140; (c) The business firm must provide the zone sponsor with a plan that details the action steps to be taken to meet the proposed new timeline for the employment qualifications. (d) The zone sponsor must review the plan described in (1)(c) and find that the plan submitted by the business firm is satisfactorily supported to demonstrate a clear plan to achieve the proposed new timeline. (e) The written agreement shall include required employment or alternative performance criteria, including but not limited to job retention, improvements in productivity and revenue growth, over the course of the exemption period that the business firm is not required to meet the 285C.200(1)(c)(A)-(B) employment qualifications. The written agreement shall include the date during the exemption period on which the business firm is required to meet the qualifications of ORS 285C.200(1)(c) (i.e. date when the flexible hiring timeline ends). (f) Failure to meet the terms of the written agreement is a disqualifying event for the business firm under ORS 285C.240. (2) As provided by ORS 285C.200(a), a sponsor and business firm may agree to use a flexible hiring timeline to meet the employment qualifications of 285C.200(1)(d) as provided by ORS 285C.200(5) and (6) rather than the timelines provided in 285C.200(5)(after authorization and on or before December 31 of the first tax year for which any qualified property of the firm in that zone would otherwise be exempt under ORS 285C.175) and (6) (no later than April 1 preceding the first tax year for which qualified property of the firm is exempt under ORS 285C.175). Such authority is subject to the following requirements: (a) The new hiring timeline to meet the employment qualifications of ORS 285C.200(5) and (6) must be detailed in a written agreement between the business firm and the sponsor. (b) The written agreement to revise the hiring timeline for the employment qualifications must be executed on or before the date on which the firm is authorized under ORS 285C.140. (c) The business firm must provide the zone sponsor with a plan that details the action steps to be taken to meet the proposed new timeline for the employment qualifications. (d) The zone sponsor must review the plan described in (2)(c) and find that the plan submitted by the business firm is satisfactorily supported to demonstrate a clear plan to achieve the proposed new timeline. (e) The written agreement shall include required employment or alternative performance criteria, including but not limited to job retention, improvements in productivity and revenue growth, over the course of the exemption period that the business firm is not required to meet the 285C.200(1)(d) employment qualifications. The written agreement shall include the date during the exemption period on which the business firm is required to meet the qualifications of ORS 285C.200(1)(d) (i.e. date when the flexible hiring timeline ends). (f) Failure to meet the terms of the written agreement is a disqualifying event for the business firm under ORS 285C.240. (3) This rule does not apply with respect to qualified property of an authorized business firm used in operating a data center, as defined in OAR 123-650-0100.